There is up to £33,000 for free to be had by potential ISA investors, yes that’s right, £33,000!!
I am talking about the Lifetime ISA or LISA.
If you’re an IFA with a client who is saving towards a first-time house purchase or retirement then they could get up to £33,000 for free, guaranteed.
How does it work? (and why don’t we all have one?)
It can be used only for a First-Time Home Buyer or for Retirement, not for general investing (If you end up using it for this you lose the bonus 25%)
It is individual so a couple can have one each.
For house-buying the property must be worth less than £450,000 and you cannot have owned any property, anywhere in the world before.
You can’t access funds until after 12 months for house buying and age 60 for retirement.
You can save up to £4,000 a year in a LISA
The Government will add 25% to the LISA (so at £4,000 a year they will add £1,000 each year) and this is before any interest or growth.
There are both Cash and Stocks and Shares LISAs available and so there really is no major restriction on clients considering this and you IFAs out there can still be offering ISAs to your clients, just potentially with a bonus they can’t get from the usual Stocks and Shares ISAs.
So all you IFAs out there recommending Stocks and Shares ISAs should be considering the LISA, especially for clients close to retirement or first time buyers, if they have a Cash ISA, why wouldn’t you look at this? Likewise if they regularly save into a Stocks and Shares ISA why would they not want 25% extra for free?
The answer should be that you consider the LISA every time, say “yes Niel!” and get your clients that £33,000!!
Now where was that application form……..?